What are shares?
A share is a unit of ownership in a company. When you buy a share, you own part of that company and become a shareholder. Shares are issued by a company to raise money (capital) to finance investment plans.
Benefits of owning shares
- Dividends - Companies declare and distribute profits to its shareholders in form of dividends
- Bonus Shares - Shareholders may increase their shareholding through bonus shares
- Shares can be used as surety or collateral when borrowing from a financial institution
- Shares of listed companies can be sold on the stock exchange and therefore easily converted into cash